Prepare statements of cash flows (indirect and direct method) (Learning Objectives 1, 2 & 3):PAGE-770
Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.
|
Barton Publication Company, Inc.
Balance Sheet
As of March 31, 2010 and 2009
|
|
|
2010
|
2009
|
Increase (Decrease)
|
|
Current assets :
|
|
|
|
|
Cash
|
$ 55,600
|
$14.700
|
$40,900
|
|
Accounts receivable
|
51,400
|
53,300
|
(1,900)
|
|
Inventories
|
65,400
|
59,700
|
5,700
|
|
Prepaid expenses
|
3,700
|
5,100
|
(1,400)
|
|
Long-term investment
|
10,000
|
6,800
|
3,200
|
|
Equipment, net
|
71,700
|
70,200
|
1,500
|
|
Land
|
35,500
|
97,000
|
(61,500)
|
|
Total assets
|
293,300
|
$306,800
|
(61,500)
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Note payable, short-term
|
$43,200
|
$48,900
|
$(5,700)
|
|
Account payable
|
4,300
|
3,500
|
800
|
|
Income tax payable
|
13,700
|
15,500
|
(1,800)
|
|
Salary payable
|
9,200
|
12,400
|
(3,200)
|
|
Interest payable
|
8,200
|
7,400
|
800
|
|
Accrued liabilities
|
2,900
|
3,400
|
(500)
|
|
Long-term note payable
|
48,900
|
93,100
|
(44,200)
|
|
Common stock
|
69,600
|
61,700
|
7,900
|
|
Retained earnings
|
93,300
|
60,900
|
32,400
|
|
Total liabilities and equity
|
$293,300
|
$306,800
|
$(13,500)
|
Selected transaction data for the year ended March 31, 2010, include the following :
- Net income, $77,000
- Paid long-term note payable with cash, $59,600
- Cash payments to employees, $43,000
- Loss on sale of land, $9,600
- Acquired equipment by issuing long-term note payable, $15,400
- Cash payments to suppliers, $147,100
- Cash paid for interest, $4,100
- Depreciation expense on equipment, $13,900
- Paid short-term note payable by issuing common stock, $5,700
- Paid cash dividends, $44,600
- Received cash for issuance of common stock, $2,200
- Cash received form customer, $299,400
- Cash paid for income taxes, $12,000
- Sold land for cash, $51,900
- Interest received (in cash), $1,000
- Purchased long-term investment for cash, $3,200
Requirements
- Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
- Also prepare a supplementary schedule of cash flows from operations using the direct method.